WELCOME
Weekly selected highlights in flow control, treatment and combustion from the
many McIlvaine publications.
Latest News
Shale Webinar:
Tomorrow, February 7 we will be conducting a webinar on the markets for shale
gas combust, flow and treat equipment and the impact of IIoT.
The booming U.S. economy is partly a result of shale gas and liquids
extraction technology which has improved to reduce the breakeven point to as low
as $30/bbl equivalent price of oil.
Cost cutting innovations are continuing to be developed.
The use of automation, remote monitoring and data analytics is a major
potential for future cost reductions.
It is also a way to insure environmental compliance.
You can register for the session at
Free Market Webinars.
Oil, Gas Shale and Refining
Much of the shale oil and shale gas
market potential is in the U.S.
Lower extraction costs are triggering, transmission and processing projects.
This service provides the world market forecasts for offshore, onshore
conventional and tight sources.
There are profiles of the major specifiers including owner/operators and EPC'S.
Project opportunities are posted continually but are focused on the 500
largest specifiers and purchasers
N049 Oil, Gas, Shale and Refining Markets and
Projects
Fossil Fired Power Plants.
Coal fired boiler and gas turbine owners and system suppliers will remain
the largest purchasers of CFT equipment and services over the next 10 years.
Coal use will continue to rise until at least 2030.
The two drivers are electricity demand and the lower cost of coal fired
power in certain Asian countries.
All of the coal projects are tracked in a weekly Alert and database
42EI Utility Tracking System.
The gas projects are tracked 59EI Gas
Turbine and Reciprocating Engine Supplier Program
Advanced Forecasting.
McIlvaine provides consulting relative to the value of potential
acquisitions, SWOT analyses for various new initiatives as well as detailed
forecasting of specific product opportunities by industry, process and
geography. Many of these
studies are extensions of our market reports.
Whereas our market reports would have 50,000 forecasts, the Advanced
Forecasting could have 4 million forecasts to include every product in every
industry in every sales territory.
We now have expanded this scope to include the specific purchases by the top
1000 prospects. We are doing
studies in many areas outside our multi-client reports e.g. couplings,
compressors, fans, aquaculture, commercial and residential water treatment.
For more details contact Bob McIlvaine at
rmcilvaine@mcilvainecompany.com
The Advantages of Offering Multiple Combust, Flow and Treat (CFT) Products
Bob McIlvaine who founded the Mcilvaine Company in 1974 but prior to that headed
an air pollution company describes these advantages. "One of the largest
potential projects was a new engine plant and foundry for Ford Motor Company.
We were dominant in foundries but did not have a good offering for engine
plants. The project was bid in two
stages: engine plant first and foundry second. AAF took advantage of their
broader product line and as part of the stage 1 bid offered air pollution
control for both stages. They won the bid for both and we never even had a
chance to bid. So, there has always been a preference by the purchaser for
single source responsibility."
The McIlvaine Company has been observing the sea change in the combust, flow and
treat business due to IIoT. The
interconnection of things such as valves, pumps, and filters allows the system
to operate more efficiently. This
interconnection and the value of it can be entirely outside the scope of the
product supplier. If so someone else is gaining the wisdom as to how the
products can best interact.
The supplier of both pumps and valves has the opportunity to be the wisdom
source as to the best interaction between the two. He can use this wisdom to
improve his pumps and valves so that they better communicate than do the
competitor's products. So, this advantage alone is enough to encourage suppliers
to coordinate disparate product sales efforts.
But there is another reason as well.
This wisdom can be captured in a sub
system with pumps, valves and controls guided by an edge computer which further
communicates with the cloud based plant system.
If the pump/valve supplier provides this edge package he greatly
increases capex revenues. If he
also remotely advises and then services the system he greatly increases MRO
revenues.
Obtaining coordination among disparate product groups with different
distribution paths is a challenge.
Some of the most successful acquisitions have been because the acquirer allowed
the acquisition to operate independently.
This is why the management gurus recommend third party coordinated
voluntary collaboration and not top down mandates.
The simplest and best way to achieve the coordination is at the local sales
level. In the new era most of the CFT products are going to be purchased by a
few thousand companies. BASF, Arcelor Mittal, and many others with the ability
to monitor operations around the world are centralizing purchasing and with it
sophisticated lowest cost of ownership analyses.
These companies can be identified and the relevant market intelligence
about their plans obtained.
Sales people for the different product lines can then easily communicate with
each other relative to a specific prospect.
For a customer such as BASF with many plants in the Americas, Asia and
Europe but with decision making in Germany there needs to be a BASF targeted
group effort. Sales people at
territories in each plant location for each product line need to be included.
They need to be alerted to project developments and competitive
developments. For example, BASF has
standardized on condition monitoring systems with one specified valve
manufacturer and one instrument company.
So this is a challenge that needs to be communicated. They can
interconnect in a variety of digital ways.
Corporate can concentrate on providing the intelligence needed for each
major customer and then let the salesmen decide how they can best coordinate
with each other.
All of this is explained in the 5-step program linked from the website at www.
mcilvainecompany.com. If you have questions you can contact: Bob McIlvaine at
rmcilvaine@mcilvainecompany.com
847-784-0012.
EXCERPTS
FROM MUNICIPAL WASTEWATER
DECISIONS , FEBRUARY 4, 2018
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